World Investment Report 2007

Transnational Corporations, Extractive Industries and Development (Includes CD-ROM)

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The role of transnational corporations in extractive industries is attracting renewed attention, partly as a result of rising commodity prices and increased demand from emerging economies. This year, the World Investment Report examines TNC’s activities in extractive industries and their development implications. The Report explores policy options aimed at ensuring tangible and long-term gains for growth and development in developing countries. As usual, the first part of the Report reviews recent developments in global and regional FDI trends. Includes CD-ROM.



The policy challenge

There have been significant changes in the role of TNCs in the extractive industries since the 1960s, some of them triggered by policy shifts in host countries. These firms operate in most of the mineral-rich countries today, under different contractual arrangements and to varying degrees (chapter IV). Many low-income countries have to rely on TNCs’ capital, know-how and management skills for the extraction of their mineral deposits, but there are concerns related to some of the economic consequences of this reliance; a major issue has to do with the sharing of the revenues generated. There is also growing awareness of the need to address the environmental and social impacts of extractive activities, with or without the involvement of TNCs. Indeed, after decades of resource extraction, the transformation of dormant mineral deposits into sustainable development gains remains a demanding undertaking in many countries (chapter V).


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